The Electrolux Group (STO:ELUXA) (STO:ELUXB) has made a strategic decision to focus its North American Small Appliances business on its strongest categories, as part of a process to improve the global competitiveness of the business area. In line with this decision, Electrolux has agreed to divest its North American vacuum cleaner brand Eureka to Midea Group Co., Ltd.
“This move allows us to focus on our most profitable categories in the U.S.,” said Ola Nilsson, Head of Electrolux Small Appliances. “It also allows us to invest in innovation and strategic growth. The U.S. vacuum cleaner market remains important for Electrolux.”
The agreement includes most of the assets related to the Eureka brand. Sales of products under the Eureka brand amounted to approximately USD 60 million over the past 12 months. The transaction is not expected to result in any material net one-off effects on the Group income statement. The transaction is expected to close before year end.
About Midea
Midea, a Fortune 500 company, is a leading global manufacturer of consumer appliances and heating, ventilation and air-conditioning (HVAC) systems with $21 billion in revenues, over 100,000 employees worldwide, 26 manufacturing locations globally, and wide-ranging strategic partnerships around the world.
About Electrolux
Electrolux is a global leader in home appliances and appliances for professional use, based on deep consumer insight. We offer thoughtfully designed, innovative and sustainable solutions, developed in close collaboration with professional users. The products include refrigerators, ovens, cookers, hobs, dishwashers, washing machines, vacuum cleaners, air conditioners and small domestic appliances. Under esteemed brands including Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine, the Group sells more than 60 million products to customers in more than 150 markets every year. In 2015, Electrolux had sales of SEK 124 billion and 58,000 employees. For more information go to www.electroluxgroup.com
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